ExxonMobil records strong profits after cost-cutting measures

Exxon Mobil Corporation has revealed full-year profits of $23bn, following a strong fourth-quarter of trading, amid successful cost cutting measures and share buyback plans.

Exxon reported fourth-quarter earnings of $8.9bn, while capital and explorations were in line with guidance, at $5.8bn over the three month, capping off at $16.6bn for the full-year.

The group generated $48bn in cash flow from its operating activities, its highest level since 2012, while reducing structural costs by an $1.9bn.

This helped Exxon increasing total savings to nearly $5bn versus 2019, strengthening its balance sheet to pre-pandemic levels by paying down $20bn in debt

It now expects to achieve 2025 emission-reduction plans four years ahead of schedule, and for net zero scope one and two greenhouse gas emissions for operated assets by 2050, with plans to achieve net zero in the Permian Basin by 2030.

Darren Woods, chairman and chief executive officer said: “Our effective pandemic response, focused investments during the down-cycle, and structural cost savings positioned us to realize the full benefits of the market recovery in 2021.”

The results followed announced cost-cutting measures by the company, including jobs cuts and the decision to simplify and combine its businesses, amid activist pressure.

It has also committed to a $10bn share buyback programme.